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SBA 504 Loan

Financing for SBA qualified businesses

If your business needs to acquire a building or large piece of equipment, the SBA 504 Loan may be right for you.

Ideal for Growing businesses anticipating new job creation as a result of the project financed, and looking to acquire fixed assets such as land/building or large pieces of equipment
Qualification Guidelines Qualify per SBA guidelines
Use of Proceeds Land, buildings (purchase, construction, renovation), long-term machinery and equipment
Loan Size Amounts from $150,000 to $15 million.
Financing Detail Financing through Bremer Bank (50%) and a Certified Development Company (40%), with a 10% borrower injection (increased injection required on new businesses or special-purpose real estate)
Collateral Business assets and/or mortgage on real estate; both Bremer Bank and SBA hold secured interest
Underwriting Requirements Personal guaranty by all owners of 20% or more; life insurance on business principals in amount of SBA loan; hazard insurance
Loan Terms Terms vary based on financing provider:
  • Minimum 10 years on Bremer Bank-financed real estate loan
  • Minimum 7 years on Bremer Bank-financed machinery and equipment loan
  • Up to 20 years on SBA-financed loan portion
Interest Rates Rates vary based on financing provider:
  • Bremer Bank: Negotiated fixed or variable rate
  • SBA: Below-market fixed interest payment
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